Favorable Volume Variances Are Never Harmful, Since Achieving Them Encourages

question 97

True/False

Favorable volume variances are never harmful, since achieving them encourages managers to run the factory above normal capacity.

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Definitions:

GAAP

GAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting practices and financial reporting in the United States.

Segment Reporting

The practice of dividing a company's financial reports into segments based on geographical areas, products, or services to provide insight into performance.

Reportable Segments

Sections of a business that have separate financial information available and are significant enough to warrant separate disclosure in the company's financial statements.

Profit (Loss)

The financial result that occurs when revenues exceed expenses (profit) or expenses exceed revenues (loss).